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MEMORANDUM OF UNDERSTANDING BETWEEN THE INTERNATIONAL UNION OF OPERATING ENGINEERS REPRESENTING EMPLOYEES IN THE WASTEWATER TREATMENT DIVISION AND THE CITY OF MISSOULA This memorandum of understanding was entered into this of 2010 by the INTERNATIONAL UNION OF OPERATING ENGINEERS representing employees in the Wastewater Treatment Division (herein after referred to as the Union) and THE CITY OF MISSOULA, MONTANA (herein after referred to as the Employer) and amends the current collective bargaining agreement between the parties listed herein. In the spirit of teamwork and cooperation the Union has agreed to no wage increase for FY2011. The Union understands the economic constraints that the Employer is experiencing and has agreed to forego the negotiated increase as listed in the current collective bargaining agreement. In recognition of the Union's cooperation the Employer agrees to the following: Article 5 – Hours of Work Section 5 " Employees actually placed in stand-by status shall be compensated at the rate of one dollar and five cents ($1.05) per hour for each twenty-four hour period of the weekend for FY2009, FY2010 and for FY2011. In FY2012 through FY2015, employees placed in "stand-by status" will receive one dollar and fifteen cents (1.15/hr) per hour for each 24 hour period of the weekend." Article 21 – Wages by Employment Classification "The employer agrees to pay wastewater division employees pursuant to the following wage schedules through June 30, 2012 June 30, 2015. Classification July 1, 2010 July 1, 2011 July 1, 2012 July 1, 2013 July 1, 2014 Classification I $15.47* $16.06* $16.72* $17.40* $18.10* $15.72 $16.31 $16.97 $17.65 $18.36 Classification II $20.36* $21.13* $21.99* $22.88* $23.81 $20.61 $21.38 $22.24 $23.13 $24.06 "Any employee retiring between July 1, 2010 and the end of the term of this agreement will, upon retirement, be provided a wage adjustment for FY2011 equal to 3.75% for hours worked in FY2011. This ---PAGE BREAK--- increase will not be carried forward to subsequent years of the contract. The increase in the hourly wage will only be for hours worked in FY2011." Article 29 – Term of the Agreement The terms of this Agreement shall be extended for four years, July 1, 2008 through June 30, 2012 2015. However, the City agrees to open the contract July 1, 2012 to discuss language issues. IN WITNESS WHEREOF, said parties of this Memorandum of Understanding have hereunto set their hands and seals this day of , 2010. FOR THE UNION FOR THE CITY Craig Davis John Engen Field Representative Mayor Charles Clark Bruce Bender Team Member Chief Administrative Officer Randy Fortney Team Member ATTEST: Martha L. Rehbein (SEAL) City Clerk